Only Treasury auction securities, new-issue CDs with a term to maturity of 5 years or less, and certain CD strategies are eligible for this service. Treasury inflation-protected securities (TIPs), inflation-protected CDs (CDIPs or IFCDs), callable CDs, floating and adjustable rate CDs, and CD purchases exceeding $250,000 are all ineligible, as are all other fixed income instruments and all secondary Treasury or CD securities.
Auto Roll benefits
When your initial Treasury and CD investments mature, this service will help you identify reinvestment options according to the terms of the Auto Roll Service Agreement. While it helps you reinvest maturing principal, it will not monitor your accounts or investment decisions and you still need to pay attention to the Auto Roll alerts so you can take appropriate action.
How to enroll
After you accept the Auto Roll Service Agreement and subscribe to the Fidelity Alerts Service for eligible US Treasury and CD positions, select Yes on the Auto Roll option displayed on the order entry screen to take advantage of this convenient feature. If you are building a Model CD Ladder, you will be asked if you wish to utilize the Auto Roll Service during the ladder construction process. If you select the Auto Roll Service, it will apply to all CD positions in the ladder and will reinvest proceeds from all maturing CD positions in new issue CDs with maturities equal to the length of the ladder. The Auto Roll Service requires that you subscribe to Fidelity Alerts.
Ending the Auto Roll service
You have the ability to withdraw from the service at any time with no penalties, giving you complete control. This Auto Roll feature will continue to purchase a replacement position upon the maturity of your existing position unless:
- You cancel the Auto Roll feature for that enrolled position
- You sell part of, or add to, that enrolled position
- You sell positions from that CD Ladder or elect to turn off the Auto Roll feature from that CD Ladder
- There is a material change to the Treasury auction schedule, such as that there is no longer a Treasury auction available at the time your existing Treasury position matures or the corresponding Treasury auction has an expected yield below zero.
- Fidelity is unable to find a replacement new-issue CD that meets the size, duration, and coupon frequency criteria of the maturing position, pursuant to the applicable Auto Roll Service terms
- You delete your subscription to the Auto Roll service